This application generally relates to electrical communications and to data processing and, more particularly, to authorizing electronic commerce transactions.
Household debt is a problem. The New York Times recently reported that in 1990 the average, revolving credit card balance was about $2,550. By late 2004, however, the average balance had grown nearly 200% to $7,520. The average household, in addition, has even more debt for a home mortgage, student loans, and automobile loans. The Bureau of Labor Statistics also reported that in 1999 households began, on average, deficit spending. That is, throughout the 1960's, ′70s, ′80s, and ′90s, households had an income surplus. In 1999, however, households in the United States began spending more than their yearly income. Some people forecast that we are facing a debt crisis, where increasing interest rates will cause financial ruin for many debt households.
Few mechanisms, however, are available to curb spending. Debt consolidation may help manage debt, but the total amount of debt remains unchanged. Bankruptcy is often considered a last resort and has severe consequences. Disciplined spending will successfully reduce debt, but frugality is harder to implement in a household. When debt reduction requires the efforts of multiple people in the household, the chances of successfully reducing that debt are reduced. What is needed, then, are methods, systems, and products that permit one or more persons or entities to effectively control the spending of others. The controlling person or entity should have an ability to authorize, or decline, any transaction involving other persons.